Department of Justice investigating Bridgepoint

Bridgepoint Education announced in a filing Monday (Oct 15) that it is being investigated by the U.S. Justice Department. Bridgepoint stock plummeted almost 9% in after-hours trading. Bridgepoint said investigators are looking into compensation of its admission personnel. The Department of Education has looked into the same subject, as have Senate investigators. The company has come under withering criticism because it spends more money recruiting students than educating them, and has a miserable dropout record. The company's stock has slumped sharply since two accreditation bodies cocked an eyebrow at its policies. Thanks to Matt Potter for alerting me to this investigation.